2025 Budgetary Allocations Will Boost Local Governance – Hon. Dominic Napare Declares
The Member of Parliament for Sene East, Hon. Dominic Napare, has commended the 2025 national budget, describing it as a significant boost to local governance and a “budget of hope” for Ghanaians.
Speaking in an interview with ExpressNewsGhana after debating the budget in Parliament on Friday, March 21, 2025, Hon. Napare praised several provisions aimed at revitalizing Ghana’s decentralized governance system, including the decapping of the District Assemblies Common Fund, the reintroduction of allowances for Assembly Members, and the reversal of property rate collection to the District Assemblies.
“The 2025 budget is actually a budget of very high hopes for Ghanaians,” he said. “It’s the first time I’ve seen a budget that a lot of people seem to understand clearly because it was simplified in structure and presentation. It brings great relief, especially in the local governance sector.”
Tax Reforms and Relief
Hon. Napare highlighted the planned abolishment of unpopular taxes such as the Electronic Transfer Levy (e-levy), betting tax, emission taxes, and others in the energy sector.
He argued that these tax reforms will ease the burden on ordinary Ghanaians and support digitalization and entrepreneurship.
“The e-levy was a regressive tax,” he noted. “It stifled digital transactions and put pressure on the poor. We said it at the time, but it was forced on us. President John Dramani Mahama’s promise to cancel the tax, as captured in this budget, is a huge relief.”
Restoring Decentralization
As a member of the Local Government Committee of Parliament, Hon. Napare expressed strong support for the budget’s renewed focus on decentralization.
“President Akufo-Addo’s government, in my view, weakened local governance. The introduction of the Capping and Realignment Act centralised resources that should have gone to the local level,” he argued. “The common fund, road fund, energy sector levy fund, and even NHIS funds were capped, reducing the amount reaching the districts.”
He continued, “Globally, decentralization is seen as key to addressing poverty and empowering local communities. The 2025 budget seeks to reverse this trend by ensuring that not less than 80% of the District Assemblies Common Fund is sent directly to the districts, which is very commendable.”
According to Hon. Napare, under the previous administration’s disbursement formula, nearly 50% of the common fund was expended at the central level, with only a fraction reaching the districts.
“In 2020, about 49.7% of the common fund was disbursed at the center, and of the remaining 50.3%, three percent was earmarked for persons with disabilities, leaving the assemblies with barely 40%,” he explained. “Now, with this new commitment to channel more funds directly to the local level, we are hopeful of real development.”
Empowering Assembly Members
Hon. Napare also praised the budget’s provision for the payment of allowances to Assembly Members, describing it as a long-overdue policy shift.
“Since the inception of the local government system in 1988, assembly membership has largely been voluntary,” he said. “But times have changed. Assembly Members are expected to consult with their electoral areas before meetings and report back afterward — all without financial support. This budget changes that.”
He emphasized that the new allowance system would enhance the functionality of the local governance structure by enabling Assembly Members to effectively engage with constituents.
“This initiative will not only improve performance but will also revive public confidence in the assemblies,” he added. “We can no longer ask people to work for the government for free and even fund their own work.”
Reversing Centralized Control
Hon. Napare further criticized the creation of centralized ministries like the Ministry of Sanitation for taking over functions that traditionally belong to the district assemblies.
“Awarding contracts for toilets and boreholes from Accra took away the core responsibilities of district assemblies,” he lamented. “It rendered local assemblies inactive, and citizens began to lose interest in their own local governance.”
He emphasized that the 2025 budget, restoring autonomy and funding to local authorities, represents a return to true decentralization and participatory governance.
“This budget gives power back to the people,” Hon. Napare said. “With these policies, local governments will finally have the resources and capacity to drive meaningful development in their communities.”
The 2025 Budget Statement and Economic Policy was presented to Parliament by Finance Minister Dr. Cassiel Ato Forson on March 11, 2025.
Source: Felix Nyaaba//expressnewsghana.com
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